Morocco awards first solar contracts since 2020 to increase renewable energy sources

Gas consumption will contract slightly this year due to high prices and Russian cuts in Europe, with only slow growth over the next few years as consumers turn to alternatives, the International Gas Agency said on Tuesday. ‘energy.

The IEA more than halved its global gas demand forecast in its latest quarterly gas markets report.

It now expects growth of just 3.4% by 2025, an increase of 140 bcm from 2021 levels, less than the 175 bcm jump in demand recorded. in 2021 only.

“The consequences of Russia’s invasion of Ukraine on global gas prices and supply tensions, as well as its implications for the longer-term economic outlook, are reshaping the outlook for natural gas,” said the IEA.

HIGHLIGHTS

The IEA more than halved its global gas demand forecast in its latest quarterly gas markets report.

It now expects growth of just 3.4% by 2025, an increase of 140 bcm from 2021 levels, less than the 175 bcm jump in demand recorded. in 2021 only.

“Today’s record prices and supply disruptions are hurting natural gas’s reputation as a reliable and affordable source of energy, casting uncertainty over its prospects, particularly in developing countries where there is s expected it to play an increasing role in meeting growing energy demand and energy transition goals,” he added.

As Russia cut off deliveries to Europe and European nations pledged to wean themselves off Russian gas, the impact quickly spread around the world.

European countries are trying to make up the shortfall by importing more liquefied natural gas shipped by tanker, which the IEA says is creating supply tensions and leading to demand destruction in other markets.

He warned that the LNG rush risks not only causing economic harm to other, more price-sensitive importers, but also driving up prices and thus contributing to additional revenue for Russia.

“In this context, an accelerated phase-out of Russian gas should primarily focus on reducing gas demand and scaling up locally produced low-carbon gas” such as biogas, biomethane and hydrogen green, the IEA said.

The IEA, which advises energy-importing countries on policy, said in its new forecast of weaker gas demand growth that only a fifth of the reduction came from expected efficiency gains and fuel substitution. renewable gas energy.

“The lower gas demand growth in our forecast compared to last year does not guarantee an accelerated transition to net-zero emissions, as the bulk of the revision comes from a gross domestic product and a lower fuel switching than faster conversion and efficiency from gas to electricity. gains,” the report said.

The IEA said that additional green energy transition measures, in addition to their long-term impact on reducing emissions, would ease pressure on gas prices globally by reducing gas pressures. supply while improving air quality in the short term by accelerating the phase-out of coal.

“The most sustainable response to the current global energy crisis is to strengthen efforts and policies to use energy more efficiently and accelerate clean energy transitions,” said Keisuke Sadamori, IEA Director for Markets and energy security, in a press release.

Comments are closed.